1. Financial Reporting Standards of ILRI Presented by Wubalem Dejene ILRI-N2Africa Project Financial Reporting Training Workshop October 16, 2015 Infocenter-ILRI, Addis Ababa

2. Overview ILRI Financial Reporting Template Clarify purpose of each budget lines and discuss on new additional requirements An overview of Collaborative Research Agreement (CRA) with respect to finance related sections/articles Payment installments, budget shift/amendments, report due date Use of fund and Audits Elaborate detail expenditure listings, internal controls, currency exchange losses/gains, etc

3. Financial Reporting Template There are five budget line categories: Personnel Travel Workshops/training/capacity building Other direct costs Indirect Costs

4. Financial Reporting Template… cont. Q. What costs are covered under Personnel budget line with respect to N2Africa Project?

5. Financial Reporting Template… cont. Personnel Budget line covers: Per diem for permanent/full time research staffs i.e. for participating in major activities of the project Per diem for Woreda Experts, Development Agencies, Divers, etc Labor wages

6. Financial Reporting Template… cont. What cost is covered by Travel budget line?

7. Financial Reporting Template… cont.

8. Workshops/training/capacity building budget line covers: Participant costs per diem, accommodation, travel, visa, etc Other costs associated with workshop/training/field day refreshments, hall rent, stationery supplies, training material productions

9. Financial Reporting Template… cont. Other Direct Cost budget line covers: Direct project expenses that do not fit into the other direct cost categories Input costs: seed, fertilizer, inoculant, etc Purchase of supplies: stationary, sampling bags, etc Soil analysis Car maintenance and services Communication costs

10. Financial Reporting Template… cont. Indirect cost budget line: Allocates maximum 5% of the total direct cost Covers facility-related institutional costs i.e. finance, HR, office rental, etc

11. Financial Reporting Template… cont. Q. Which budget category covers the following costs: Consultancy Equipment Sub-grants

12. Financial Reporting Template… cont. Consultancy, Equipment, and Sub-grants are NOT covered by N2Africa Project. Q. Do you need further clarification on the Financial Reporting Format?

14. New Additional Requirement on Financial Reporting Effective from September 1 st, 2015

15. New Additional Requirement on Financial Reporting … cont. All project financial reports be accompanied by a detailed expense (line item) listing in both Excel and PDF signed formats. From the detailed listing ILRI will then select a small sample for partners to provide supporting documents (copies) for verification and archives.

16. Finance Related Sections under Collaborative Research Agreement (CRA) Funds and Disbursements 1 st installment: maximum 40% upon signature of the agreement 2 nd …5 th installments: maximum 40% upon upon receipt of quarterly first financial report accompanied by a detailed lists of expense (i.e. fully utilized amount of the previous grant received) by....date….[September 15, 2015] Why: we are trying to minimize our prepaid amounts and relatively not to advance more 3 months of estimated expenditure

17. Finance Related Sections under Collaborative Research Agreement (CRA)… cont. Funds and Disbursements Final installment: maximum 20% (minimum 10% ) upon receipt of the FINAL financial (i.e. fully utilized amount as per approved budget and accompanied by a detailed lists of expense ) and progress reports and progress report by April 15, 2016 Why? To refund the total of actual expenditures reported; or to withhold a part of the last payment till donor or audit confirmation has been received;

18. Finance Related Sections under Collaborative Research Agreement (CRA)… cont. Reporting Financial & Technical Reports will be submitted by email no later than 15 days after the end of the reporting period (quarterly). The financial report will be accompanied by a detailed listing of expenses in both Excel and PDF signed formats. This should be duly signed and certified by the Partner’s Chief Financial Officer.

19. Finance Related Sections under Collaborative Research Agreement (CRA)… cont. Use of Funds Up to 10% budget variance per budget line is allowed. Prior written approval from ILRI will be required for higher variances and/or to exceed the total budget amount. Costs incurred after end date of the agreement are not acceptable. It requires prior approval for no-cost extension. NB: ILRI requires an invoice from partners to process payments.

20. Let’s energize…….icebreaker Write your name in the air first with your right hand, then Then you left hand Write your name in the air with both hands at the same time

21. Overview of Main Budget Management Process: ILRI Create unique code for the project… identify and announce the Budget Holder/Project Leader Income recognition ….. issue an invoice Utilization of the fund…. required three signatories Monitoring and controlling…. receive monthly financial status and outstanding balance summary notes from Head Office to monitor burn rates/partner advances/donor receivables Closure of the grant/project …..close the unique code, complete deliverable, archive documents

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